Refined aluminium output in Shandong unaffected, price under pressure
There would be little impact on the capacity of refined aluminium in Binzhou, Shandong province even though the city was said to have exceeded its allowed capacity, according to SMM senior analyst Liu Xiaolei.
In fact, he said that the capacity swap and increase in other regions should be paid more attention to.
China has completed 4.16 million mt of refined aluminium capacity swap in 2017, according to SMM research, with another 1.98 million mt of left. Inner Mongolia, Xinjiang and Shanxi provinces topped the list for capacity swap.
“Since the launch of production cut due to environmental production, around 1 million mt of refined aluminium capacity have been affected. However, this has not led to supply shortage and aluminium ingot inventory remained high,” Liu said.
He added that the increase of ingots inventory during late January to February next year could be remarkable and aluminium price is likely to be pressured.